Question

Can you explain the type of fiscal policy have european counties used since the crash in 2008?

Answer 1

Most of the countries that were hit by the recession of 2008-09 used expansionary fiscal policy to combat recession and the response was based on Keynesian theory of deficit spending by the government. Europian Union approved a stimulus of 200 billion euro and the member nations have, in addition, there separate plans that ranged from 170 billion to 200 billion as a part of fiscal expansion. This stimulus was around 1.2% or more of GDP

Hence there was a expansionary fiscal policy based on Keynesian theory of deficit spending by the government